How Wrong Employee Evaluation Can Increase Churn

Employee churn can be very harmful to companies in the long run. Looking to know more about it. Keep reading this guide!

Employee churn is when an employee leaves their current employer and joins another company. When a company experiences high employee churn, it can hurt its ability to retain customers and employees.

It's important to remember that employee churn doesn't just affect your company's bottom line; it also affects your employees' personal lives. When employees leave their job, they may lose their healthcare benefits or have to start paying into Social Security again. This can be stressful for them and their family members.

In addition, if an employee has been with you for a long time and then leaves, it can take a long time to find someone else who wants to take their place—especially if you're a small business or self-employed individuals who don't have any other options for finding other employees.


Why Do People Leave Their Jobs?

There are three main reasons employees leave their job:

- They feel like they're not being treated fairly or that management doesn't care about them.

- They feel like there's no opportunity for advancement within the company.

- They think working at the same place would be boring and better elsewhere.

The first reason is often about how management treats employees, and it's something you can only sometimes avoid.

The second reason is often about how much money an employee makes, which you can control by offering different positions with different pay scales based on experience or skill set. The third reason is about how much fun your workplace is—if it's boring or awkward, employees will find other places where they feel more comfortable.

What is Employee Evaluation?

​​Employee evaluation is a critical part of the hiring process. If you have employees, you have to evaluate them regularly. You need to know their strengths and weaknesses to determine how to best support them. You also have to assess their performance—are they doing the job well? If not, what can you do differently?

When deciding whether someone should stay or go from your company, you must get feedback from others who work with that person. This can help you avoid making decisions based on personal bias or assumptions about how everyone works together in your company.


How is Employee Evaluation Related to Churn Rate

Does employee evaluation play a huge part in employee churn rates? When you evaluate your employees, you're looking for ways to improve them and make them more productive. To do this effectively, it's important to understand what makes an employee thrive: Do they get along well with coworkers? Are they passionate about the work that they do?

If your employees are happy with their jobs and coworkers, they're less likely to want to leave—and even if they do want to leave, they'll be more likely to stay if they know how much you value them as individuals.


The most important thing you can do to avoid employee churn is to ensure your employees are happy and feel secure at work!

This means listening closely when they tell you what's happening in their lives outside of work—and then making sure that their experience at work reflects those things back at them to give them an apt environment.

Find out how Compport can help you manage all your Employee Benefits process, book a demo today!

Share this post

Recommended articles

May 3, 2024

Rethinking Rewards: Continuous Reviews for the Equitable Workplace

It's time for companies to shift gears and use continuous compensation reviews to fuel engagement and fair compensation at the workplace
Read More
April 1, 2024

Understanding Total Compensation: Beyond the Salary

Discover the holistic view of total compensation beyond salary. Learn its components, importance, and how to calculate it effectively.
Read More
April 1, 2024

The Future of Work: 4 Key Total Rewards Trends You Can’t Ignore

The landscape of total rewards is evolving. For the younger generation, the emphasis is on personalization, instant recognition for their efforts, and a holistic well-being focus. HR leaders need to design a data-driven total rewards program to match the employees' preferences
Read More

Learn how Compport can help your team

Get a Demo